E-Banking Frauds And Fraud Risk Management Under The Light Of RBI Guidelines

Rachna, Research Scholar, Law Faculty, S.S.J. Campus, Almora Kumaon University, Nainital, Uttrakhand

ABSTRACT

Indian banking system can go cashless with the aid of internet banking. Internet banking is also known as e-banking or online banking or virtual banking. It is an electronic payment system that enables customers of a bank or other financial institutions to contact a range of financial transactions through the financial institution websites. Through Internet banking we can check our transactions at any time of the day as many times as want to. The online banking frauds in India have increased tremendously. Internet banking frauds is a fraud or theft committed online technology to illegally remove money from a bank account and or transfer money to an account in a different bank. Internet banking Fraud is a form of identity theft and is usually made possible through techniques such as phishing, lottery fraud scam etc. In India there are no sufficient Internet banking laws but the reserve bank of India has issued some guidelines at the latest in this regard though it is not sufficient to make the banks follow robust and required cyber security procedure. The paper is focused to study and highlights the types and many ways of Internet banking frauds that take place in our banking systems nowadays, and also to understand and study the ways of fraud risk management on the part of every individual bank and RBI guidelines with special reference to legal framework that is prevalent in India the customer against the menace of it.

Keywords: Internet Banking, Core banking, E-banking fraud, fraud risk management, legal issues